Investors don’t necessarily have to compromise on performance if they want to invest sustainably. As leaders in both thematic and responsible investing, we combine the two to deliver strong investment performance for our clients, as well as sustainable growth for the planet.
Once a niche activity, environmental investing is now moving into the mainstream. The problem investors face is that there is no universally accepted method for measuring a company’s environmental footprint. So how do you know if your fund is delivering the environmental benefits it promised?
Our distinctive process is based on a scientific, rule-based framework. The Planetary Boundaries model was developed in 2009 by a group including scientists from the Stockholm Resilience Centre, and identifies nine of the most critical environmental dimensions that are essential to maintain a stable biosphere required for human development and prosperity. These include carbon emissions or climate change, fresh water, land use, biodiversity and others. Click here to find out more.
The team use this framework to identify companies with the strongest environmental credentials across their entire value chain, from the extraction of raw materials and manufacturing processes, through to distribution and transport, product use, disposal and recycling.
As the chart above shows, the fund achieves a significantly more positive environmental impact than that of a typical global equity index across all nine dimensions, particularly in climate change. For example, as shown above in the top left chart, carbon dioxide emissions of companies in our portfolio stand at 454 tonnes of CO2 equivalent per million dollar of annual revenue (tCO2 eq/mn$), compared with 1,948 tonnes for the MSCI World index.
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Information, opinions and estimates contained in this document reflect a judgment at the original date of publication and are subject to change without notice. Pictet Asset Management (Europe) S.A. has not taken any steps to ensure that the securities referred to in this document are suitable for any particular investor and this document is not to be relied upon in substitution for the exercise of independent judgment. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Before making any investment decision, investors are recommended to ascertain if this investment is suitable for them in light of their financial knowledge and experience, investment goals and financial situation, or to obtain specific advice from an industry professional.
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The mentioned financial instruments are provided for illustrative purposes only and shall not be considered as a direct offering, investment recommendation or investment advice. Reference to a specific security is not a recommendation to buy or sell that security. Effective allocations are subject to change and may have changed since the date of the marketing material.
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